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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of certain tax revenue to acquire and enhance |
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multipurpose venues and related infrastructure in certain |
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counties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 352, Tax Code, is amended |
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by adding Section 352.117 to read as follows: |
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Sec. 352.117. CERTAIN QUALIFIED PROJECTS. (a) In this |
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section: |
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(1) "Base year amount" means the amount of |
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hotel-associated revenue collected in a project financing zone |
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during the calendar year in which a county designates the zone. |
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(2) "Hotel-associated revenue" means the sum of: |
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(A) state tax revenue collected in a project |
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financing zone from all hotels located in the zone that would be |
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available to the owners of qualified hotel projects under Section |
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151.429(h) if the hotels were qualified hotel projects; and |
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(B) tax revenue collected from all permittees |
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under Chapter 183 at hotels located in the zone, excluding revenue |
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disbursed by the comptroller under Section 183.051(b). |
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(3) "Incremental hotel-associated revenue" means the |
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amount in any calendar year by which hotel-associated revenue, |
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including hotel-associated revenue from hotels built in the project |
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financing zone after the year in which a county designates the zone, |
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exceeds the base year amount. |
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(4) "Project financing zone" means an area within a |
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county: |
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(A) that the county by order designates as a |
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project financing zone; |
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(B) in which a qualified project is or will be |
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located; and |
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(C) the designation of which expires not later |
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than the 30th anniversary of the date of designation. |
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(5) "Qualified project" means a venue consisting of |
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multipurpose facilities to enhance hotel activity and encourage |
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tourism, and any related infrastructure, that is located on land |
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owned by a county or by the owner of the venue. |
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(6) "Venue" and "related infrastructure" have the |
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meanings assigned by Section 334.001, Local Government Code. |
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(b) This section applies only to a qualified project located |
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in a county described by Section 352.002(i). |
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(c) In addition to the other uses provided by this chapter, |
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revenue from the county hotel occupancy tax may be used to fund a |
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qualified project. |
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(d) A county may pledge for the payment of bonds or other |
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obligations issued or incurred to acquire, lease, construct, |
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improve, enlarge, and equip a qualified project: |
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(1) the revenue derived from the tax imposed under |
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this chapter from a hotel located in the project financing zone; |
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(2) the local revenue from eligible tax proceeds as |
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defined by Section 2303.5055(e), Government Code, from hotels |
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located in a project financing zone that would be available to the |
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owners of qualified hotel projects under that section if the hotels |
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were qualified hotel projects; and |
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(3) the revenue the county is entitled to receive |
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under Subsection (e). |
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(e) A county shall notify the comptroller of the county's |
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designation of a project financing zone not later than the 30th day |
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after the date the county designates the zone. Notwithstanding |
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other law, the county is entitled to receive the incremental |
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hotel-associated revenue from the project financing zone for the |
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period beginning on the first day of the year after the year in |
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which the county designates the zone and ending on the last day of |
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the month during which the designation expires. |
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(f) The comptroller shall deposit incremental |
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hotel-associated revenue collected by or forwarded to the |
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comptroller in a separate suspense account to be held in trust for |
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the county that is entitled to receive the revenue. The suspense |
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account is outside the state treasury, and the comptroller may make |
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a payment authorized by this section from the account without the |
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necessity of an appropriation. The comptroller shall begin making |
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payments from the suspense account to the county for which the money |
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is held on the date the qualified project in the project financing |
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zone is commenced. If the qualified project is not commenced by the |
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fifth anniversary of the first deposit to the account, the |
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comptroller shall transfer the money in the account to the general |
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revenue fund and cease making deposits to the account. |
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(g) The comptroller may estimate the amount of incremental |
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hotel-associated revenue that will be deposited to a suspense |
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account under Subsection (f) during each calendar year. The |
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comptroller may make deposits to the account and the county may |
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request disbursements from the account on a monthly basis based on |
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the estimate. At the end of each calendar year, the comptroller |
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shall adjust the deposits and disbursements to reflect the amount |
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of revenue actually deposited to the account during the calendar |
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year. |
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(h) A county shall notify the comptroller if the qualified |
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project in the project financing zone is abandoned. If the |
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qualified project is abandoned, the comptroller shall transfer to |
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the general revenue fund the amount of money in the suspense account |
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that exceeds the amount required for the payment of bonds or other |
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obligations described by Subsection (d). |
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SECTION 2. This Act takes effect September 1, 2025. |